Saturday, August 2, 2014


SKIRACER:LESSON 6:  Leaving the Workplace
I am not a professional in anything that matters on this site… not financial manager, not attorney, not CPA, etc.   I merely offer opinions or summaries.
Is Your Future Solid Financially?
It takes far more to retire than one might expect. Over time inflation takes a big bite out of an income stream.  IF ( not likely) our inflation rate remains at about 3% a year then in 20 years your buying power is only one third what it is today. That is not going to cut it. You can plan your own retirement or get a professional. Either way you need LOTS more than one 25K dinar note will yield.  IF you do not believe this, ask a grandparent how they have fared over time. 
So don't quit that job without a replacement income stream. Make sure you have replaced the income flow BEFORE TAXES and that it is flowing regularly.  This will take a few months or a quarter at least. Don't forget to include:
  • Healthcare benefits
  • Retirement matching funds contributions
  • stock options
  • paid vacation time
  • Healthcare savings account contributions
  • Education benefits
There are many sites that will help you calculate what you need. Just google Retirement planning calculator. An easy one is found at BANKRATE.COM.   
Where Will You Spend Time?
What do you plan to do with all your spare time?  Getting up, working out, eating get old and boring after a while. Have a plan. Spend time developing it.
Your TO DO list before Resigning:
  • Move your 401K to an IRA. That takes both time and effort to set up and make happen.
  • Shop for new healthcare coverage.  You need it and it isn't cheap.  And the new rules make it harder to find it except in "the enrollment periods."
  • Give up to 3 weeks notice, depending on your position and job.  The others aren't leaving so don't make it harder on them that you are.
  • Make sure this CE is done, signed, sealed, and delivered.  Make sure you have positioned it for the replacement income stream and that you have verified it works and is totally in place.
  • If you are young you need to set up a retirement plan.  That means that some money needs to be set aside so it grows conservatively and steadily so if anything goes belly up you will still be able to retire and not need to return to the work force when you are 54.

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